Lanxess AG

Lanxess AG Overview

Company Headquarters: Cologne, Germany

Founded: 2004

Workforce: ~15,441

Company Working: LANXESS AG (LANXESS) is a holding company that offers specialty chemicals, chemical intermediates, additives, specialty chemicals, and plastics. The company operates through four business segments, including advanced intermediates, specialty additives, performance chemicals, and engineering materials. The advanced intermediates segment consists of industrial chemical intermediates, chemical precursors, and specialty active ingredients. The specialty additives segment focuses on the manufacturing specialty additive chemicals, such as plastic and rubber additives, phosphorus-based and brominated flame-retardants, plastic additives, such as flame-retardants and plasticizers, and lubricants. The performance chemicals segment covers application-oriented processes and functional chemical operations. The high-performance materials segment includes plastic engineering materials. The ARLANXEO segment offering synthetic rubber is shut down since April 2018. LANXESS operates around 74 production sites in 33 countries across Europe, the Middle East & Africa (EMEA), North America, Latin America, and Asia-Pacific.

Strategy

LANXESS AG's key strategy is to focus on sustainable growth and innovation while maintaining a customer-focused approach. The company aims to provide solutions that contribute to a sustainable future and invests heavily in research and development to create new products and improve existing ones. LANXESS AG also places a strong emphasis on compliance with laws and regulations, as well as integrity and responsibility among its employees. The company has a global presence and is committed to expanding its reach through partnerships and acquisitions. Additionally, LANXESS AG seeks to continuously improve its operational efficiency and cost structure to enhance its competitiveness in the market.

Company Snapshot

$8,522M

Revenue

15,441

Employees

2004

Founded

Cologne, Germany

Headquarters

SWOT Analysis

Strengths

Diversified revenue base
Strong operational performance
Substantial revenue base across all the major regions
Increasing investments in the high-performance plastics segment
Wide offerings serving different end-use industries
Globally diversified revenue base
Core business operation only in specialty chemicals
Considerable investment in the research & development
Broad product portfolio
Global presence
High investments in R&D activities
800 patents
Increase in research and development expenses in 2018
Regionally diversified revenue base
Wide product portfolio catering to diverse market segment
Large customer base
Advanced manufacturing facility

Weaknesses

Poor performance of ARLANXEO business segment
Declining performance of ARLANXEO, which accounts for the largest share of its revenue
Declining profitability
Increasing legal costS
Dependency on suppliers
Divestment of Belgium rubber plant
No recent developments in the global rubber vulcanization market
Declining revenue between 2017 and 2018
Decline in revenue from the performance chemicals segment
Presence of halogenated flame retardants in the current product portfolio
High dependency on distributors for supplying products across the globe

Opportunities

Strategic initiatives
Growing construction and automotive industries
New product launches
Acquisition of Chemtura in April 2017
Strategic investments generate lucrative opportunities as they unlock new potential and improve market position
Eco-friendly product manufacturing
Strategic initiatives such as switching leather business to South America,
Growth opportunities in the Latin American region
Divestment of the ARLANXEO business segment to focus on the specialty chemicals business
Growing regulations against the use of halogenated flame retardants
Positive outlook of the end-use industry

Threats

Stringent Registration, Evaluation and Authorisationof Chemicals (REACH) regulations
Intense competition in the market
Long-term purchase contracts vulnerable to fluctuating raw material prices
Intense competition from leading engineering plastics producers
Stringent REACH regulations
Raw material availability
Volatile raw material prices
Intense competition
Changing environment regulations across the regions
Weak US dollar over Euro affects the business earrings
Fluctuations in foreign exchange rates may affect the trade

Key Developments

Date	Approach	Development
November 2021	Product Launch	The specialty chemicals company LANXESS has developed Macrolex Orange HT, a dye that can be used to permanently color plastics with the RAL 2003 shade of orange. This color is increasingly being used to mark live cables in electric and hybrid vehicles as well as components for high-voltage applications. The signal color is intended to alert mechanics and emergency services to the potential danger of electric shock. Photo: LANXESS AG
July 2019	Expansion	Lanxess has successfully completed the expansion of its Macrolex dyes production plant at the Chempark Leverkusen. With an investment of more than EUR 5 million, the capacity was increased by around 25 percent. The expanded plant was officially put into operation at the beginning of May.

Product Offering

Lanxess AG
- Polyethylene
- Polyamide
- Polystyrene
- Performance Chemicals
- Advance Intermediate
- Synthetic Rubber
- High Performance Material
- Specialty Additive
- Others
- Rubber Vulcanization
- Inorganic Pigments
- Cast Elastomers
- Polyurethane Foam
- Global Dyes Market

Financial Performance

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